General Terms & Conditions

(A)General Terms and Conditions

This document sets out the terms and conditions governing the use of trading services offered by ETX Capital in relation to making financial spread bets and trading CFDs. You should read this document and the Risk Warning, the Order Execution Policy, the Privacy Statement and any other documents that we have supplied to you or will supply to you in the future.

These terms and conditions are effective from 30th September 2011.

1Information

1.1ETX Capital is a trading name of Monecor (London) Limited. In this Agreement "ETX Capital", "we", "us" "our", "ours" and "ourselves" refer to Monecor (London) Limited, as appropriate. Monecor (London) Limited is a company incorporated in England and Wales with company number 00851820 and is authorised and regulated by the FSA with registration number 124721.

1.2Unless you are notified otherwise by us, our contact details are:

Address: Beaufort House, 15 St Botolph Street, London, EC3A 7DT.

Email: customerservice@etxcapital.com

Telephone number: +44(0)20 7392 1494

2This Agreement

2.1The agreement between us relating to your trading with us consists of:

(a)the application form;

(b)the terms and conditions set out in this document; and

(c)any other document we may provide to you and expressly state that it forms part of the agreement between us,

together with any additional document published by us from time to time that further explains or regulates trading or betting, "this Agreement".

2.2This Agreement governs the relationship between ETX Capital and its client ("you", "your" or "yourself", as appropriate) with respect to trading. It should be read carefully, in particular clauses 9 (Trading), 11 (Margin), 16 (Force Majeure Events) and 19 (Our Liability Limitation and Your Indemnity of Us). By checking the 'Do you agree to our Terms & Conditions?' box on our Website or signing the account opening documentation, you agree to be legally bound by this Agreement.

2.3From time to time we may offer new Services or Products to you (where such Services or Products are permitted to be provided to you pursuant to applicable law) and any such additional Services or Products will, in the absence of a separate agreement between you and ETX Capital, be subject to this Agreement as may be amended from time to time.

2.4If there is any conflict between this Agreement and the Financial Services and Markets Act 2000 (the "Act") or Applicable Regulations, the Act and Applicable Regulations will prevail. Nothing in this Agreement will exclude or restrict any duty or liability owed by us to you under the Act or Applicable Regulations.

2.5Certain words and expressions appearing in this Agreement have been given particular meanings. Where capitalised words are not defined in the relevant clause, the definitions set out in clause 30 (Interpretation) shall apply.

2.6This Agreement represents the entire agreement between the parties and supersedes any previous agreement that may exist in respect of trading, including the Terms and Conditions dated 9th June 2011. You agree that all other terms, conditions, representations, warranties and other statements which would otherwise be implied (by law or otherwise) will not form part of this Agreement and you acknowledge that in entering into this Agreement and in effecting each Trade you place no reliance on any representation, warranty or other statement other than as set out in this Agreement.

2.7This Agreement will be effective on the earlier of (a) the day on which we acknowledge acceptance of your application or (b) the day on which we accept your first deposit or the first trade on your account.

3Your Account

3.1We must accept you as a client before you are entitled to use the Services.

3.2You must provide all information and evidence specified by us for the purposes of verifying your identity. If we are not satisfied with the information provided, we may request additional information. We have no obligation to process further or accept your application until verification procedures have been completed to our satisfaction.

3.3We may obtain personal data from a third party agent for the purposes of processing your application. This may include the results of checks with credit reference and fraud prevention agencies (who may keep a record of the search), other financial organisations and your employer.

3.4The FSA Rules require that we obtain information about your relevant investment knowledge and experience in order to ascertain if our Products and Services are appropriate for you before we open an account for you.

3.5We may refuse your application for any reason and we are not obliged to provide you with any reason for so doing.

3.6After accepting your application we will open your account. We may open different types of accounts depending on the nature of your trading (example: you may be invited by us to trade mainly online or alternatively over the telephone).

3.7Unless we agree otherwise, all accounts you open with us, including any Joint Accounts, will be Linked Accounts. We may, at our sole discretion, aggregate your linked accounts for the purpose of calculating your Maintenance Margin or otherwise as specified in this Agreement.

3.8If you open an account with one or more other persons (a "Joint Account"), you shall be jointly and severally liable for losses, fees or charges arising on that Joint Account. Among other things, this means that any monies owed on the Joint Account shall be payable in full by you or any one of the other Joint Account holders and we will have no obligation to collect from any holder. Additionally, we may (unless we have expressly agreed otherwise in writing) take instructions to trade from and/or pay any portion of the balance to, you or another holder of the Joint Account without prior notice to you and we may give any notices or communications to either you or another holder of the Joint Account. Upon the death of a holder of the Joint Account we may provide notices to and take instructions from their survivor(s).

3.9 You must keep your password secure and confidential. At no time will our employees ask you for your password, and under no circumstances should you divulge it. If you become aware or suspect that your password has been ascertained by a third party, you must inform us immediately. We accept no responsibility for any unauthorised use of your account and/or your password.

4Basis of Trading

4.1We are the counterparty to all Trades executed using the Services. All Trades are on a principal-to-principal basis (we will not be entering into Trades as your agent). They are performed by us on the receipt of instructions from you and on an 'execution-only' basis. We are under no obligation to satisfy ourselves as to the suitability of any Trade, to monitor or advise upon its performance or, subject to FSA Rules, to make Margin Calls or to close out Trades.

4.2Any information supplied by or on our behalf should not (and will not be deemed to) be taken to constitute advice to you on the suitability, risks, merits or demerits of any specific Trade. We do not guarantee or warrant the accuracy, timeliness, completeness or correctness of any information we may make available to you. We do not advise on the merits of particular transactions or their tax consequences.

4.3Upon checking the 'Do you agree to our Terms & Conditions?' box on our Website or otherwise submitting the account opening documentation, and each time you open or close out a Trade or place an Order (see also your warranties at clause 15 (Market Abuse)), you represent and warrant on a continuing basis to us, with the intent that such representation and warranty shall survive the completion of any Trade, that:

(a)you enter into this Agreement and any Trades pursuant to it on your own behalf as principal and not as agent (or trustee) for any other party;

(b)no Act of Insolvency has occurred in relation to you;

(c)you have all requisite legal, corporate and/or regulatory authority to enter into this Agreement and any Trades made pursuant to this Agreement and any person affirming acceptance of this Agreement on your behalf has been and is duly authorised to do so;

(d)if an individual, you are 18 years of age or older;

(e)all information you supply to us during the application process and otherwise from time to time is complete, true, current and accurate;

(f)you are not contravening any legislation in the country from which you are placing your Trades;

(g)in making any Order you have been solely responsible for making your own independent appraisal and investigations into the risks of a Trade;

(h)you have read and understood the following documents (available for your review on our Website):

(i)the Risk Warning;

(ii)the Order Execution Policy;

(iii)the Privacy Statement; and

(iv)the Conflicts of Interest Policy; and

(i)you have sufficient knowledge, market sophistication and experience, or have received sufficient professional advice in order to enable you, to make your own evaluation of the merits and risks of any Trade.

4.4You may be categorised a Retail Client, Professional Client or an Eligible Counterparty. If we categorise you as a Professional Client or Eligible Counterparty you may lose the protection of certain FSA Rules. In certain circumstances we may wish to re-categorise you and in that event will explain clearly why we are doing this and the effect this may have your rights.

4.5We will not make any payment or accept any instructions (or act on them), if such instructions do not contain information that we reasonably require or if such payment or instructions may breach any Applicable Regulation or our internal procedures.

4.6Your trading will not create any rights of ownership or otherwise in any Underlying Market. We will not transfer any Underlying Market or any rights in it to you.

4.7It is your responsibility to ensure that any Trades you place from outside the United Kingdom do not breach any overseas regulations that may be applicable to you.

5Our Charges

5.1When you trade or bet with us you will be charged a commission or, with some Products, a Bid Offer Spread. The commission or Bid Offer Spread that will be charged depending on the circumstances of each Trade will be agreed in advance with you.

5.2Please be aware that we may apply dividend or other adjustments to your Trade as set out in clause 14.5 (Corporate Actions, Dividends and other Situations).

5.3Trades that are held overnight may be subject to a funding charge or refund as appropriate which is incurred on each day that the relevant Trade is open and is levied as part of our end-of-day process. For markets other than FX, the charge or refund is calculated based on the total equivalent market value of each Trade held overnight and we will then charge or pay interest on this market value for each day the Trade is held open overnight. We will charge the Relevant Funding Rate for Long Trades and will pay the Relevant Funding Rate for Short Trades. For details on FX trading charges please see the FX Dealing Guide available on our Website. For details of specific funding rates please see the relevant Market Information Sheets that are available on our Website.

5.4We may from time to time share a percentage of this commission, Bid Offer Spread or funding with third parties who have introduced you to us. Details of any sharing arrangements that may apply to your account are available on request.

5.5There may also be an additional overnight borrowing charge applied to any Short Trades you hold with us. Sometimes we are charged an extra fee when we borrow stock to hedge your Trade and it is usually related to the scarcity of the stock concerned. These charges can fluctuate daily. We will advise you of any such charges as soon as possible after we become aware that they have been incurred.

Currency Conversion

5.6If you deposit money to your account or make Trades in a currency other than your Base Currency you should note the following:

(a)If you make a Trade in a currency other than your Base Currency it is possible to realise a profit or loss in that currency. As a result you may find that you have multiple balances in different currencies.

(b)The realised profits or losses from each Trade may be converted to your Base Currency and posted to your account in that Base Currency. We may also convert any non-Base Currency adjustments or charges to your Base Currency before such adjustments/charges are booked on your account, and we may convert any money received from you in a non-Base Currency into your Base Currency.

(c)All conversions made in accordance with this clause 5.6 will be made at an exchange rate within +/-0.5% of the prevailing Spot Price at the time of the conversion.

5.7If you have requested to opt-out and we have agreed that sub-clause 5.6(b) does not apply to one or more of your accounts we may, when we consider it reasonably necessary or when requested by you, convert into your Base Currency positive or negative trading balances and/or money standing to your credit in a non-Base Currency.

5.8From time to time (example: in a monthly statement), we may provide information to you which presents your multicurrency balances in the equivalent value of your Base Currency, using the rates prevailing at the time the information is produced. However you should note that the balances have not been physically converted and that the presentation of the information in your Base Currency is for your information only.

Other Charges

5.9We may charge you when processing a deposit or withdrawal of funds (example: when using a credit card). Details relating to such charges can be obtained by contacting customerservice@ETXCapital.com. Your bank or another relevant third party may levy additional charges in connection with the deposit and/or withdrawal of funds. Any such third party charges will be borne by you.

5.10You acknowledge that other taxes or costs may exist that are not paid through, or imposed by, us. You are responsible for any such additional taxes or costs.

5.11There may also be circumstances where we pass on additional charges (examples: borrowing costs or stamp duty or other taxes) which we might incur when hedging your Trade in an Underlying Market in a non-UK security.

5.12We reserve the right to charge interest at a rate of 8% above the prevailing base rate of The Bank of Scotland plc (or other financial institution selected by us in our absolute discretion) in respect of any debit balance, unpaid Margin or other sums overdue to us under this Agreement.

5.13Any sums due to us in accordance with the terms of this Agreement may be deducted from your account without further notice to you.

6Your Money

6.1If you have been categorised as a Retail Client (or we have agreed to segregate your funds) the following shall apply:

(a)When you transfer money to us or money is paid to us on your behalf or is credited by us to your account, such money will be held in a segregated client money bank account at one or more approved financial institutions in accordance with the Client Money Rules.

(b)On each Business Day (or more frequently) we will carry out reconciliations between the amounts required to be held in the client money bank account and the money that is not required to be segregated as client money and we will make any required transfer to or from the client money bank account.

(c)You agree that we may discontinue treating any money held on your behalf as client money and release such money from the client money bank account if you have not traded in the previous six (6) years and we have not been able to contact you after making reasonable efforts. Any such money will remain owing to you and we undertake to retain records of all such amounts.

6.2If you have been categorised as a Professional Client or an Eligible Counterparty, the following shall apply:

(a)When you transfer money to us or money is paid to us on your behalf or is credited by us to your account, you agree that the full ownership of the money is transferred to us for the purpose of covering your obligations as provided in this Agreement. Accordingly, the Client Money Rules will not apply and the money will not be segregated from money held in our account(s) and may be used in the course of our business. In the event of our insolvency, you will rank as general creditor in respect of such money.

(b)Money transferred to us will be recorded by us as a cash repayment obligation owed by us to you. On your request, we will transfer an equivalent amount of money back to you where, in our discretion, we consider that the amount of money you have transferred to us is more than is necessary to cover your obligations to us. In determining the amount of collateral and the amounts of cash margin, your obligations, and our obligations to you, we may apply such methodology (including judgments as to the future movement of markets and values) as we consider appropriate, consistent with Applicable Regulations.

6.3Unless we agree in writing, we will not be under any obligation to pay interest on money held on your behalf and you hereby waive any entitlement to receive interest.

Payment and Withdrawal of Funds

6.4We may refuse to accept payment by a particular method and if so we may require you to use alternative methods of payment.

6.5We do not accept cash or payments from, or make any payments to, third parties or other client accounts unless agreed in advance. Any such agreement will be at our discretion and under such terms as we may require from time to time. Funds deposited by way of transfer of monies between client accounts can only be carried out, with all due care, after signed written authority has been received from the paying client.

6.6Funds deposited by way of credit card can only be refunded by way of bank transfer or cheque made payable to you.

6.7We will allow five (5) working days to clear funds deposited by cheque drawn on a UK bank account. We, in our sole discretion, may allow a longer period for cheques drawn on a non-UK bank account.

6.8The lesser of your Cash Balance or your Liquidation Value may be paid to you, generally according to your instructions, but subject to the prior deduction of any sums due to us in accordance with the terms of this Agreement.

6.9To make a withdrawal, you must specify the method of withdrawal either by written request or email or from those displayed on the 'Withdraw Funds' page on our Website. We will make reasonable efforts to give effect to your withdrawal instructions forthwith; however, you should note that while the funds remain in your account they may not be 'ring fenced' (i.e., segregated) from the Cash Balance in your account and if so they will be used to calculate your Maintenance Margin or otherwise as specified in this Agreement. Funds may be withdrawn via repayment to debit cards, cheque by post, or wire transfer. Different charges may apply.

6.10If any regulatory body has queried transactions on your account for whatever reason, we reserve the right to suspend your account pending receipt of guidance or instructions from that body or other resolution.

6.11There may be exceptional circumstances where we are restricted by the authorities, or by Underlying Market conditions or by our hedging partners from making a payment of money to you until either the restriction is removed or the Underlying Market conditions are met or our hedging partner is able to make the payment to us. We are not required to provide you with reasons for the restriction. We undertake to release your funds as soon as we are able to do so in accordance with this Agreement.

7Electronic Services

7.1Where an Electronic Service involves you placing Orders with or giving instructions which are to be carried out by us then unless we agree otherwise you acknowledge that:

(a)where an instruction has been given it shall be irrevocable and we shall be under no obligation to take any steps to reverse it unless so required by law;

(b)an Order will not be effective until you receive an onscreen confirmation of receipt thereof from us; and

(c)there are inherent risks in using electronic communications such that the systems may fail or they may not be secure and communications may be intercepted by unauthorized parties or may not reach their intended destination or may do so much later than intended for reasons outside our control.

7.2We will use commercially reasonable efforts to ensure that our Electronic Service can be accessed by you for use in accordance with this Agreement. Subject thereto we give no undertaking, representation or warranty that any Electronic Service will be available or accessible.

7.3We may, at our discretion, suspend any Electronic Service with or without notice for any reason, including but not limited to carrying out maintenance, repair or development. We will not be liable if access to any Electronic Service is prevented or interrupted or otherwise unavailable due to a Force Majeure Event and/or because of any suspension pursuant to this Agreement.

7.4We will not be liable for any virus or other malicious or damaging software encountered by you in the course of accessing any Electronic Service, or the failure of any Electronic Service to be compatible with the systems used by you.

7.5Unless you are offered telephone trading services by us, you must ordinarily trade online via our Website. If you cannot close an open Trade due to technical difficulties with the online trading platform, you may close such a Trade by telephone (see clause 7.8 below).

7.6You are responsible for ensuring that your information technology is compatible with ours and meets our minimum system requirements. The minimum system requirements are as set out on the Website from time to time.

7.7Unless otherwise indicated or agreed, any prices shown via any Electronic Service are indicative at the time shown and based on data which is subject to constant change. The execution price is that price which is confirmed to you at the time of execution.

System Failure

7.8If, despite our numerous safeguards, any trading platform or related system failure should occur that makes trading impractical, all new trading will be suspended. All open Trades will remain open until their respective Markets close; however, while systems are down, no Stop Loss Order or Limit Order may be executed. We are not responsible for any additional Loss suffered due to a Stop Loss Order or a Limit Order not being duly executed. You remain liable for any open Trades until confirmation is issued that they have been closed. In the event of a system failure, you may close Trades via the telephone. Please note that during periods of high volatility in Underlying Markets we may experience unusually high telephone call volumes and where Electronic Services or telephony is interrupted you may not be able to get through. In such circumstances we will use commercially reasonable efforts to answer your call as quickly as possible but will not be liable to you for any Loss due to delay.

8Telephone Trading

8.1You may use telephone trading services if:

(a)we invite you to use telephone trading services offered by us during relevant Market hours provided you meet certain requirements as determined by us; or

(b)you require the telephone service as an alternative form of communication where your normal other form of communication (example: via our online trading platform) is unavailable.

8.2Our current hours for receiving the telephone service are from Sunday 9:30 pm to Friday 9:15 pm inclusive, which may change as notified on our Website.

8.3The commission quoted via the telephone service may in certain circumstances differ from that which is displayed on our online trading platform.

8.4We will not accept any instructions in relation to a Trade where such instructions are received solely in the form of messages left on our answer-phone or voicemail facilities. Where you instruct us by telephone in accordance with the terms of this Agreement, you must only do so by talking directly to one of our authorised staff members via one of our recorded landlines.

8.5We reserve the right not to provide a two-way price to you on the Products we offer you.

8.6Without prejudice to any other term of this Agreement, the provisions of clause 11 (Margin) will apply to Trades made via the telephone trading service.

8.7Although Trades may be placed over the telephone as provided under this clause 8, it is your responsibility to monitor and manage such telephone Trades and your accounts by logging onto the Website.

8.8Execution of an Order will only be confirmed by telephone and/or email if this is specifically requested.

9Trading

9.1The provisions of this clause 9, in addition to all other provisions of this Agreement, will apply to each Trade placed by you with us. You are trading on the price of a financial instrument (example: a share) and will not be entitled to delivery of, or be required to deliver, the underlying financial instrument, nor will you be entitled to ownership thereof or any other interest therein.

9.2You may place Trades via the online trading platform or in accordance with clause 8, by telephone. We accept no liability for instructions sent electronically (example: by SMS, email, Bloomberg or other instant messaging services) and are under no obligation to act on such instructions unless you have obtained prior permission from us.

9.3We will provide you with a means to Trade (sell or buy) the price of various financial contracts for a given amount per movement of the Underlying Market.

9.4You may not hold opposing Trades (or positions) in the same Product, in the same account, for the same expiry date. For example, you may not open one (1) 'buy' Trade and then open one (1) 'sell' Trade in the same Underlying Market. Should you seek to do so, the earlier Trade will be automatically closed and a profit or loss will be realised.

9.5You acknowledge that Trades are speculative instruments and agree that you will not enter into any Trades with us in connection with any corporate finance-style activity.

9.6We may report any Trade or other transaction undertaken by you to any relevant regulatory authority as may be required by law or best practice.

Markets

9.7We offer Trades in a variety of financial contracts of all kinds, including, but not limited to, single shares, single share indices, index futures, bond indices and futures, commodities, foreign exchange rates, foreign exchange futures, and options on any of these instruments;

9.8We list on our Website the Product specifications for each type of Trade. These specifications include the expiry date, margin requirement and the hours of trading. You should make sure that you have read and understood the contents of the Product specification before you submit your first Trade of that type.

Our Prices

9.9We maintain a Bid Offer Spread between the price at which we buy and the price at which we sell in each market upon which the relevant contracts are based. The Bid Offer Spread varies between markets and can be changed by us at any time. The Bid Offer Spread and the prices are determined solely by us at our complete discretion.

9.10Prices quoted by us are derived by reference to the price of the Underlying Market which is quoted by an Exchange that we have selected at our discretion. The prices quoted by us may be different from the price of an Underlying Market.

9.11Prices quoted are subject to confirmation by us. We will exercise all due care and skill in the preparation of the on-screen prices but, due to the nature and speed of movements in the underlying markets, the prices indicated may not necessarily be the exact prices available to open or close a Trade. We will not be liable for any losses or costs which you may incur as a result of not being able to open or close a Trade at a particular on-screen price.

9.12Due to the potential for computer or other errors, we may take any reasonable step as set out in clause 9.13 for any Trades executed at prices which are the result of any error, omission or misquote (whether by us or any third party) which is manifest or palpable, including a misquote by us taking into account the current market and currently advertised prices (examples: the wrong price or market or any error or lack of clarity of any information, source or commentator), or is otherwise clearly at odds with the fair market price (a "Manifest Error").

9.13If a Trade is based on a Manifest Error, we may, acting reasonably and in good faith and in our sole discretion:

(a)void the Trade (i.e., treat the Trade as if the Trade had never taken place);

(b)close the Trade on the basis of our then current prices; or

(c)amend the Trade, so that it is as it would have been if the Order was executed in the absence of the Manifest Error.

9.14We will exercise the above rights as soon as reasonably practicable after becoming aware of the Manifest Error. We can exercise the above rights even if you have entered into (or refrained from entering into) arrangements with third parties relating to the relevant Trade and even if you may suffer loss as a result.

Closing a Trade

9.15Trades may only be closed during our normal trading hours. When a Trade is closed, any losses will be debited (deducted) from your cash balance and any profits will be credited (added) to your cash balance.

9.16Trades can generally be closed out by you at any time during the relevant opening hours of the Market and, where applicable, before the Expiry Date and time of the relevant Trade on the price quoted from time to time by us.

9.17Without prejudice to any other rights that we may have under this Agreement, if your Trade has not been closed by the relevant Expiry Date, we may close (settle) it at the applicable official quotation or value or, if there is no formal Underlying Market, at such other relevant price, taking into account any Bid Offer Spread applied by us in such circumstances.

9.18Any funds shown as Liquidation Value in your account at closure will, on your request, be returned to you in accordance with clause 6 (Your Money).

Rolling Over and Expiry of Trades

9.19Provided there are sufficient funds on your account, you may, make a telephone rEequest to us up to half an hour before the Expiry Date of an open Trade to extend the period of that Trade (a "Roll Over"). On making a request for a Roll Over, any attached Orders to the expiring Trade will not automatically roll over to the newly rolled Trade. You must specify a new Order if required. We reserve the right to reject any such request by you to Roll Over an open Trade and will not be obligated to give you a reason for the rejection. You will be informed of such rejection by telephone or email.

9.20If we accept a request to Roll Over an open Trade:

(a)the original Trade will be closed at our current price; and

(b)a new Trade is immediately placed in the market underlying the first Trade at our relevant current price offered for the new Trade.

9.21We have the right to charge you in accordance with clause 5 (Our Charges) for any expenses or costs (including third party expenses and costs) incurred in connection with processing a request made by you to roll over an open Trade.

9.22If you do not close an Expiring Trade, it will be closed automatically upon its Expiry Date, unless a request for a roll over has been accepted.

9.23In exceptional circumstances we may require an expiring trade to Roll Over (example: where we are unable to close out our related hedging trade).

Non Expiring Markets

9.24Non Expiring Trades may be closed by us where we deem it necessary (examples: in a Force Majeure Event or where the cost of financing the Trade has used more than your Trade Funds Available). When Trades are closed by us, the price will be at the full commission quoted by us at that time or at a price that in our opinion fairly reflects the price at that time.

9.25These Trades will remain open so long as you have funding available to support the minimum Margin for each Market. We reserve the right unilaterally to move Stop Loss Order prices on any open Trade so that you remain in a positive available funds position. Should you be unable to support any Trade due to the ongoing cost of the daily financing charge (and the constraints of the minimum margin) we reserve the right to close part or all of any Trade sufficient to bring you into a positive available funds position.

9.26Any Order attached to such a Trade remains attached to the Trade until the expiry of the Order, closure of the Trade or cancellation of the Order. All other terms and conditions of this Agreement apply to Non-Expiring Trades.

Market Disruption

9.27For the purposes of this Agreement, a "Disruption Event" is the occurrence of any of the following circumstances or events:

(a)the Underlying Market related to the Market you are trading in or the Exchange on which the Underlying Market trades, whether directly or indirectly (example: on a future of or option on such Underlying Market), is the subject of a takeover offer or a merger offer; or the issuer of such Underlying Market or operator of Exchange has entered into or is the subject of insolvency or liquidation proceedings (or any Act of Insolvency has occurred in relation to such issuer or operator); or

(b)any event which disrupts the trading of the Underlying Security or trading on the Exchange including the suspension of or limitation of trading by reason of movements in price exceeding limits permitted by the relevant Exchange, or of regulatory or other intervention, or early closure of the Exchange or otherwise, and/or any other event causing market disruption and which is a material disruption.

9.28If we in our sole and absolute discretion determine that a Disruption Event has occurred on any day on which an Exchange is scheduled to be open for its regular trading session, then such day shall be a "Disrupted Day".

Consequences of Disrupted Days

9.29If a Disrupted Day occurs, we may in our absolute discretion, with or without notice to you, (and without prejudice to any other rights and remedies we may otherwise have under this Agreement or at law) take the following steps with respect to Trades that are affected by the Disruption Event:

(a)suspend trading in the Market;

(b)close any or all open Trades, refuse to place any Trades, cancel any Orders and fill any Orders in each case at such price as we may consider in good faith to be appropriate in all the circumstances;

(c)in the event of suspension of, or another Disruption Event relating to, the Underlying Market, we reserve the right to, but are not obligated to, value the relevant Trade at zero (0);

(d)suspend or modify the application of any terms of this Agreement to the extent that it is impossible or not reasonably practicable for us to comply with them;

(e)immediately require payment of any Maintenance Margin and/or any other amounts owed by you to us; or

(f)take or omit to take all such other actions as we deem appropriate in the circumstances, and in the absence of fraud or bad faith we will not be liable to you for any Loss arising for any reason including by reason of our negligence or otherwise whether or not we had been advised of the possibility of the Loss and/or the Loss was reasonably foreseeable.

9.30If trading is suspended or any of the Services are otherwise partly or fully unavailable, we will seek to inform you as soon as practicable and generally through notification on our Website.

9.31Any Trade closed by us pursuant to clause 9.29 will be closed on the basis of our current price for the relevant Market.

9.32We will not be liable for any Loss suffered by you as a result of the suspension of trading or any Service (or any delay in notifying you) as described in this clause 9.

10Orders

10.1We offer a range of different Orders to open and close Trades. It is your responsibility to understand the features of an Order.

10.2Once an Order is triggered, (i.e., your specified price is reached or breached), we will attempt to fill your Order within a reasonable time and at the next price available to you in that Market. For the avoidance of doubt, your Order is triggered by our price during our Market hours, and not the Underlying Market and its opening hours.

10.3If your Order is a Stop Loss Order then the price we fill your Order at may be the same, or worse than the price you specified in your Stop Loss Order. If your Order is a Limit Order then the price we fill your Order at may be the same, or better, than the price you specify. However, any better priced fills are at our sole discretion and you accept that we are under no obligation to pass this benefit on to you. It should be noted that in respect of an FX Trade you will not benefit from any better price fills should the price slip in your favour.

10.4You accept that there are some manual elements to our Order execution and although we seek to execute all Orders in a timely fashion in accordance with our Order Execution Policy there may be times and circumstances beyond our control that may result in your Order not being filled in our normal timely fashion (example: there may be an abnormally high number of simultaneous Orders triggered on our system).

10.5Every Market normally has a minimum price range between our current quote and the price of any Orders that are being created, and we reserve the right not to accept any Orders which are less than this minimum price range.

10.6There may be circumstances, such as a Corporate Action on a particular share or index, where your Order becomes unreasonable to act on. In such circumstances we have the right to cancel or amend your Order and shall not liable to you as a result of such action.

11Margin

Requirements

11.1The Initial Margin Requirement shall be paid by you before you open each Trade and we reserve the right to reject any Order or Trade where the Initial Margin Requirement has not been received by us. You acknowledge that the amount of Initial Margin Requirement does not indicate or in any way limit your potential losses.

11.2Once a Trade has been opened you may be required to post additional amounts called Maintenance Margin during the term of the Trade. It is your responsibility to ensure that all necessary Margin payments are made.

11.3Depending on your type of account a Stop Loss Order may be automatically placed on a Trade if your account does not have sufficient Trade Funds Available for the Initial Margin Requirement of that Trade (please see our Website for additional information). If this occurs you will receive the details of any Stop Loss Order placed in your online Trade confirmation details. You will be able to change the price of this Order or cancel this Order as long as your account continues to have positive Trade Funds Available. If you have insufficient Trade Funds Available for an automatic Stop Loss Order to be placed the minimum distance away from an attempted Trade price then the Order for the attempted Trade will be rejected.

11.4There may be unforeseen circumstances where it becomes necessary to increase or decrease the amount of Initial Margin Requirement or other Margin we require from you on your open Trades without notice to you. Examples of such circumstances include, but are not limited to:

(a)a change in the conditions of the Underlying Market such as volatility or illiquidity in the financial markets more generally; or

(b)a change in your circumstances which we believe is relevant to your financial means.

11.5In calculating any Margin required from you we may, at our discretion, have regard to your Trades (positions) held with us which may result in a reduction in the amount of Margin required of you.

11.6We will only accept money (in the methods described in clause 6 (Your Money) or as otherwise notified to you) and we will not, under any circumstances, accept any securities or any other assets as payment of Margin.

Margin Call

11.7It is your responsibility to ensure that you are aware of the status of your account at all times and monitor your Trades to ensure you have sufficient Trade Funds Available on your account to maintain your Trades or continue trading.

11.8If your Trade Funds Available balance is below zero (0) you will be subject to a Margin Call and must provide Maintenance Margin immediately to bring your Trade Funds Available balance to zero (0) or above unless we expressly agree with you otherwise (example: if we reduce or waive all or any part of an Initial Margin Requirement or Maintenance Margin. Note: Any such waiver or reduction must be agreed in writing by us and, unless expressly stated otherwise, will only apply to the specified Margin Call and may be revoked by us upon notice to you).

11.9We are not obliged to inform you of a Margin Call; however, we may inform you of a Margin Call orally, electronically or in writing. If in writing, the terms of clause 21 (Communications and Notices) will apply. You must notify us immediately of any short or long term changes to your contact details to ensure you can be notified of any Margin Call.

11.10We are entitled to request funds to cover a Margin Call at any time. A Margin Call will be deemed to have been made by us if we have used reasonable efforts to make contact using the contact details you have provided but have been unable to do so within a reasonable amount of time. Please be aware that a reasonable amount of time may well be a matter of minutes depending on the circumstances (including, but not limited to, the Market and/or size of your Trade).

11.11If a Margin Call is not met by you (in the form of cleared funds in Pounds Sterling or any other currency that we have agreed to receive) in accordance with this clause 11, we may in our discretion:

(a)close out any or all (in whole or in part) of your open Trades;

(b)exercise our rights of set off and netting under this Agreement; or

(c)close your account and not open any further Trades for you.

11.12Once the Margin Call has been satisfied - whether by the closure of one or more Trades or by the deposit of funds - and you wish to open additional Trades, the Initial Margin Requirement for any new trade must be covered in full.

11.13We will not be liable for any Loss suffered as a result of our exercising our rights under this clause 11. Any funds that you deposit or are required to deposit by way of Margin do not limit your liability to us under this Agreement or otherwise under law.

12Netting Positions

12.1All Trades and transactions between you and us in respect of your account(s) are entered into in reliance on the fact that this Agreement and all Trades and transactions form a single agreement between the parties, and that we would not otherwise enter into any Trades and transactions with you.

12.2If we have exercised our rights under this Agreement to close your open Trades and/or to close your account, we may:

(a)combine and consolidate your account with any or all other accounts held in your name with us, even if any of those accounts have been closed; and

(b)set-off against each other the amounts referred to in sub-clauses (i) and (ii) below:

(i)your Trade Funds Available (if a credit balance), profits on open Trades and any sums due to you from us of whatever nature and whenever payable; and

(ii)your Trade Funds Available (if a debit balance), any outstanding Margin Call, Losses on open Trades and any Losses or other sums due to us from you of whatever nature and whenever payable.

12.3You may require us to exercise the provisions of this clause 12 if all of your Trades have been closed.

12.4If we exercise any of our rights under this clause 12, all payment obligations will be consolidated into one obligation for you to pay a net sum to us (as we may direct), or for us to pay a net sum to you.

13Options

13.1We quote option prices on individual shares, stock indices, commodities and interest rates. In trading on options you are trading on the future value of the option. Your option Trades may be cash settled and the underlying option may be exercised by or against you in delivery of the underlying security.

13.2We reserve the right to vary Margin requirements for option Trades at our sole discretion.

13.3If there is a dividend payable within the life of the option and this dividend forms part of its Intrinsic Value, we reserve the right to quote the price of the option Trade after making an allowance for the deduction of the dividend. If there is a change in the dividend or the dividend date in circumstances where we have bought as a hedge and have exercised the relevant underlying option, you will indemnify us for any Losses thereby incurred and we may debit your Trade Funds Available accordingly.

13.4You should be aware of the special expiration schedules on index and equity options and must familiarise yourself with the details contained in the options table set out on the Website. Trades on options which are not closed by you and are allowed to expire will be closed at the following:

13.5We will take note of any adjustments made by NYSE LIFFE or any other relevant Exchange.

13.6For further information on option contract details, hours of trading, settlement times and rules on dividends please see the Website or contact customerservice@ETXCapital.com.

14Corporate Actions, Dividends and other Situations

14.1If a Corporate Action takes place that affects an Underlying Market and consequently our Market we will make a fair and appropriate retrospective adjustment, if any, to any open Trades and/or Orders you have in that Market, reflecting as close as possible the economic impact of the Corporate Action as if you were a holder of the Underlying Market (example: closing and opening new Trades and/or making cash adjustments to your account).

14.2In the event that a Corporate Action provides the holder of the Underlying Market with a choice (example: to choose between receiving shares or cash) we will, where practicable, give that choice to you but will not be liable for any Loss should we make the choice in the absence of direction from you.

14.3We will make any relevant adjustments to your Trades with respect to a Corporate Action as soon as reasonably practical for us to do so.

14.4We will not transfer voting rights relating to an Underlying Market to you or otherwise allow you to influence the exercise of voting rights held by or on behalf of us.

14.5Some of our prices do not take into account any dividend events that may take place on that market (examples: a Financial Spread Bet or CFD on an individual share). If a dividend event takes place on such a Market, and you have an open Trade in that Market on the ex-dividend date, we will make an adjustment to your account to appropriately reflect the dividend event. If you have a Long Trade then a credit will be made to your account. If you have a Short Trade then a debit will be taken from your account. Any dividend adjustment we make may reflect the dividend adjustment made to our hedged position by our hedging partners.

14.6Some Markets we make contain a dividend element which is forecasted by us. In the event that the declared dividend is unusually large, small or cancelled or the ex-dividend date differs from our forecasted ex-dividend date we reserve the right to make an adjustment to the opening price of a Trade to reflect such differences, provided any such adjustment must be fair and reasonable.

14.7If an Underlying Market becomes suspended we reserve the right to margin all associated Trades at 100% and value the market appropriately. This may mean your Trade being either valued at zero (0) or at the last price held in our Market at the time of the suspension.

14.8If an Underlying Market becomes delisted we reserve the right to close all Trades associated with that Market at zero (0).

14.9If we cover your Short Trade by a hedge there may be times when the Underlying Market becomes difficult or impossible to borrow (example: during a Corporate Action). This may result in higher borrowing costs which we will pass on to you. In some circumstances we may be required by our Underlying Market lender(s) to close all or part of our short hedge. If so, we reserve the right to close your Short Trade at the same time.

15Market Abuse

15.1We may hedge our exposure to you by opening analogous positions with other institutions. The result is that, when you Trade with us, such Trades can, through our hedging, exert a distorting influence on the Underlying Market in addition to the impact that it might have on our prices.

15.2In addition to your representations and warranties in clause 4.3 (Basis of Trading), each time you open or close a Trade, you represent and warrant to us that:

(a)you will not place and have not placed a Trade with us relating to a particular Underlying Market if to do so would result in you, or others with whom you are, or may reasonably be regarded as, acting in concert, having an exposure to that Underlying Market which is equal to or exceeds the amount of a declarable interest in the relevant company. For this purpose, the level of a declarable interest will be the prevailing level at the material time, set by law, rule or regulation or by the Exchange(s) upon which the Underlying Market is listed;

(b)you will not place and have not placed a Trade with us in connection with a placing, issue, distribution or other analogous event, or an offer, takeover, merger or other analogous event in which you are involved or otherwise interested;

(c)you will not place and have not placed a Trade that contravenes any primary or secondary legislation or other law, rule or regulation against insider dealing or market abuse. For the purposes of this clause 15 you agree that we may proceed on the basis that, when you open or close a Trade with us in a Market, you may be treated as dealing in securities within the meaning of Part V of the Criminal Justice Act 1993 and/or any law, rule or regulation against market abuse; and

(d)you will not otherwise place and have not placed a Trade in circumstances which may be considered to constitute market abuse.

15.3For the purpose of complying with legal and regulatory obligations we may in our absolute discretion, and without being under any obligation to inform you of our reason for doing so, close any Trades that you may have open and may, if we so elect, treat all Trades closed under this clause 15 as void.

16Force Majeure Events

16.1If we are prevented, hindered or delayed from performing any of our obligations under this Agreement by a Force Majeure Event, then our obligations under this Agreement will be suspended for so long as the Force Majeure Event continues and to the extent that we are so prevented, hindered or delayed. We will not be deemed to be in breach of this Agreement or otherwise be liable to you by reason of any delay or failure in performance of any of the obligations under this Agreement to the extent that the delay or failure is caused by a Force Majeure Event, and time for performance will be extended accordingly.

16.2A Force Majeure Event means:

(a)acts of God, war, hostilities, riot, fire, explosion, accident, flood, sabotage, power supply interruption, failure of communications equipment, lock-out or injunction, compliance with governmental laws (domestic or foreign), regulations or orders or breakage or failure of machinery;

(b)the suspension or closure of any market or the abandonment or failure of any event on which we base our quotes or to which our quotes may relate or the imposition of limits or special or unusual terms on trading in any such market or on any such event; or

(c)the occurrence of excessive movement in the price of, or loss in the liquidity of, any of our indices or products and/or any corresponding market, or our reasonable anticipation of such, or any other cause whether or not of the class or kind referred to above which affects performance of this Agreement arising from or attributable to acts, events, omissions or accidents beyond our reasonable control. See also clause 9.27 as to Market Disruption.

16.3We may in our absolute discretion take all or any of the actions referred to in clause 9.29 upon the occurrence of a Force Majeure Event.

17Queries, Complaints or Disputes

17.1If you wish to query any aspect of a Trade you must notify us as soon as you become aware of the issue and in any event within three (3) Business Days of the event giving rise to the issue. We reserve the right not to entertain any query or dispute raised after this time period.

17.2Subject to the above, if you wish to make a complaint or a dispute arises between us in connection with the performance of any Services, you will promptly provide our Customer Support team with full details of the relevant complaint or dispute. Should you be dissatisfied with the handling of your complaint, you may refer the dispute in writing to our Compliance Officer who will use all reasonable efforts to investigate promptly and fully and resolve the matter. Our Compliance Officer will follow our Complaints Procedure in accordance with FSA Rules and if you are unhappy with the decision reached by our Compliance Officer, and you have been categorized as a Retail Client, you are entitled to refer your complaint directly to the Financial Ombudsman Service. Information on the Financial Ombudsman Service, including how to make a complaint, eligibility criteria and the procedures involved, is available from the Financial Ombudsman Service, South Quay Plaza, 183 Marsh Wall, London E14 9SR.

17.3As an FSA regulated firm we participate in the Financial Services Compensation Scheme. You may be entitled to compensation from the scheme if we cannot meet our obligations. Further information about compensation arrangements is available from the Financial Services Compensation Scheme, 7th Floor, Lloyds Chambers, Portsoken Street, London E1 8BN.

17.4If there is any dispute, the records held by us will, in the absence of Manifest Error, be treated as the accurate prevailing records of account.

17.5To aid the investigation into your complaint or dispute, you are urged to keep your own record of your Trades (including times, amounts and Markets). Without such information it may not be reasonably possible for us to locate any record in relation to your complaint or dispute.

18Events of Default and Closure of Accounts

18.1If any Event of Default occurs we may immediately take all or any of the following actions:

(a)require immediate payment of any amounts you owe us;

(b)close all or any of your open Trades;

(c)if the Base Currency of your Account is a currency other than Pounds Sterling, convert any balance to Pounds Sterling;

(d)cancel any of your Orders and open Trades;

(e)suspend your Account and refuse to execute any Trades or Orders;

(f)exercise our rights of set-off; and/or

(g)terminate this Agreement.

18.2Without limiting any right to terminate this Agreement at any time, we may close your account in the following circumstances:

(a)you fail to pay Maintenance Margin or any other amount owed to us on time;

(b)any information supplied by you during the application process or at any other time is found or believed to be misleading or false;

(c)your trading or account activity is of such a size or style that we no longer wish to deal with you;

(d)we have reasonable grounds for suspecting the activity on your account may have involved market abuse, money laundering or any criminal activity;

(e)we are in an ongoing dispute with you and decide that we are unable to continue to provide Services to you; or

(f)you are abusive to our staff.

18.3Upon giving you notice of our intention to close your account pursuant to clause 18.2, you will not be permitted to open any new Trades and you will only be entitled to make Trades or otherwise deal as a client insofar as necessary to close all open Trades. We may close any Trades remaining open ten (10) Business Days after the date on which we give you notice.

19Our Liability Limitation and Your Indemnity of Us

19.1Nothing in this Agreement shall limit or exclude our liability to you in respect of:

(a)any duty or liability owed by us to you under the Act or the FSA Rules which may not be excluded or limited under law;

(b)your death or personal injury caused by our negligence; or

(c)Loss caused by fraud or fraudulent misrepresentation.

19.2Subject to clause 19.1(c) we shall not be liable:

(a)in contract in respect of any representation, warranty or other statement being false, inaccurate or incomplete; or

(b)in equity, tort or under the Misrepresentation Act 1967 in respect of any representation, warranty or other statement (whether or not contained in this Agreement) being false, inaccurate or incomplete unless such representation, warranty or other statement was made fraudulently.

19.3Save as provided in clause 19.1 in no event will we have any liability whether based in contract, tort (including without limitation negligence) or any other legal or equitable ground for any Loss arising howsoever, including Loss from any representation, any breach of implied term or any duty at common law or under any statute or express term of this Agreement, or relating to this Agreement or any trading activities undertaken by you using the Services, and whether or not such liability is foreseeable, and even if we have been advised or were aware of the possibility of such Loss.

19.4We shall not be responsible for indirect losses you may suffer. We shall not be liable to you for Losses which you may incur even if those Losses are foreseeable by us or because you have communicated any special circumstances you may have or the possibility of the Loss.

19.5Without prejudice to any other limitation of our liability contained elsewhere in this Agreement, the maximum amount of our liability in respect of any Loss that you may suffer in relation to any one Trade will be the amount equal to the Margin you placed with respect to that Trade.

19.6To the extent permitted by law, you will fully indemnify and at all times keep us fully indemnified against any and all liability, damages, claims, proceedings, expenses (including but not limited to legal expenses and experts' fees) arising out of or in connection with any breach of this Agreement or any negligent act or omission or fraud by you or your authorised representative(s).

20Amendments, Waivers and Rights

20.1We will be entitled to amend or vary the terms of this Agreement from time to time upon reasonable notice to you unless such amendment or variation is required sooner by Applicable Regulation. Any such amendment or variation will apply to all open Trades and all Orders as at and after the effective date of the relevant amendment or variation. If you do not agree with such amendments you are at liberty to close any open Trades and terminate this Agreement in accordance with the provisions of clause 29 (Termination).

20.2No delay in the exercise or non-exercise by either party of any right, power or remedy provided by law or under or in connection with this Agreement (example: in respect of a Margin Call) will impair such right, power or remedy or operate as a waiver or release of that right. Any waiver or release must be specifically granted in writing, signed by the party granting it.

20.3The rights and remedies of each party under this Agreement are cumulative and not exclusive of any rights or remedies of that party under the general law. Each party may exercise each of its rights as often as it thinks necessary.

20.4We do not require the consent of any Associate or Associated Company of ours to amend, vary, modify, suspend, cancel or terminate any provision of this Agreement.

21Communications and Notices

21.1It is your responsibility to keep your contact details up to date and notify us immediately of any changes.

21.2You hereby consent to all telephone communications made by or to you or on behalf of you with us being recorded. We may use relevant recordings to fulfil regulatory obligations, confirm instructions received from you and otherwise have recourse to such recordings for the purposes of resolving any disputes with or complaints from you.

21.3We will generally not accept any instructions from you unless it is orally by a designated telephone line or electronically via our trading platform (or any other forms that may be agreed by us in advance).

21.4You consent to the receipt of documents in electronic form via email, our Website or other electronic means.

21.5From time to time we may provide information to you which presents your multicurrency balances in the equivalent value of your Base Currency, using rates prevailing at the time the information is produced. However, unless we have converted the non-Base Currencies pursuant to clause 5.6 (Currency Conversion) the balances may not have been physically converted and the presentation of the information in your Base Currency will be for information only.

Confirmations

21.6Confirmation of your Trade will appear electronically on your online account, and by email depending on your email preferences. You can change these preferences via your online account or by contacting us. You must notify us if you are expecting a confirmation and no confirmation is shown on the online trading platform. You must check that any Trade confirmation contains the correct details of the Trade to which it relates. If you wish to dispute any of the details, you must notify us immediately and the matter will then be dealt with in accordance with clause 17 (Queries, Complaints or Disputes). If you have not received such a Trade confirmation and you think that you should have, it is your responsibility to make an enquiry of us. You should retain a printed copy of all Trade confirmations for record purposes.

21.7If a Trade confirmation contains an error or is otherwise inaccurate, this will not affect the validity of the relevant underlying Trade that has been executed.

Notices

21.8All communications relating to this Agreement, whether correspondence, documents, written notices, confirmations and statements or otherwise will be sent to you in accordance with the latest contact details provided by you. It is your responsibility to ensure that we are kept informed promptly of all changes in this regard. All communications will be deemed properly made:

(a)if sent by first class post to the address last notified by you to us, upon delivery;

(b)if hand delivered to the address last notified by you to us, at the time of being deposited at that address;

(c)if sent by fax or text, as soon as it has been transmitted to the fax or mobile number last notified by you to us; or

(d)if sent by email, as soon as it is transmitted to the last email address provided by you to us.

21.9In the event of a conflict between any provision of this Agreement and a non-English language version this English language version shall prevail.

21.10Where we are able and it is commercially reasonable to do so, we will endeavour to provide you with documentation and communications in your choice of language; however, we reserve the right to communicate with you in English so long as this Agreement is in effect.

21.11You acknowledge and agree that we may call upon you by telephone or visit at a reasonable hour or otherwise communicate with you without express invitation.

21.12Should you wish to receive monthly statements, you may make a written request to customerservice@ETXCapital.com.

22Data Protection

22.1You acknowledge that you will be providing personal information to us within the meaning of the Data Protection Act 1998 when making an application to become a client and otherwise from time to time. You consent to us and our Associated Companies processing your information for the purposes of establishing and administering an account in respect of the Services and otherwise in accordance with the Privacy Statement.

22.2The Privacy Statement can be found on our Website and you should read this document before commence the application process.

22.3You agree that we may disclose your information to:

(a)regulatory authorities;

(b)our auditors and professional advisors;

(c)law enforcement agencies;

(d)where reasonably necessary, third parties who provide services to us in connection with your account, and only to the extent necessary for the provision of that service.;

(e)a third party who is seeking to obtain a reference on your account or persons we believe to be seeking a credit reference in good faith; or

(f)your compliance officer (if applicable).

22.4You agree that where it is necessary for the provision of the Services to you, we may transfer your information to persons who provide services to us, including where those persons may be outside the European Economic Area.

22.5You acknowledge and agree that third parties may share any of your information with us and other organisations involved in credit referencing, debt recovery, fraud detection and prevention and money laundering detection and prevention.

22.6Unless you have advised us to the contrary (either in the on-line application process or subsequently in writing) that you do not wish to receive information from us about carefully selected offers and products or other useful information, you agree that we may contact you electronically by email, by post or by telephone (at a reasonable hour) for this purpose for the period during which you have an account with us.

22.7If you have been introduced to us by a third party you acknowledge and agree to our exchanging your information with that person to extent necessary for us to fulfil our obligations under any agreement we may have with that person. Such disclosure may result in our sharing financial and personal information, about you including your application details, your account status and your trading activity. Should you no longer wish us to disclose information to such persons please notify us in writing.

22.8If you wish to access information we may hold or wish us to correct any misinformation please notify us in writing. A fee may be charged for providing access to the information. Please note that pursuant to the Data Protection Act 1998 certain information may be exempt from disclosure or we may be unable to disclose information you request.

23Intellectual Property

23.1For the purposes of this Agreement "Intellectual Property Rights" means all patents, rights to inventions, utility models, copyright and related rights, trademarks, service marks, trade, business and domain names, rights in trade dress or get-up, rights in goodwill or to sue for passing off, unfair competition rights, rights in designs, rights in computer software, database right, topography rights, moral rights, rights in confidential information (including know-how and trade secrets) and any other intellectual property rights, in each case whether registered or unregistered and including all applications for and renewals or extensions of such rights, and all similar or equivalent rights or forms of protection in any part of the world.

23.2All Intellectual Property Rights in or arising out of or in connection with the Products, Services, Electronic Services or Website or any other thing supplied by us to you shall, to the extent not owned by a third party, be owned by us.

23.3You acknowledge and agree that, in respect of any third party Intellectual Property Rights in the Products, Services, Electronic Services or Website or any other thing supplied by us to you, your use of any such Intellectual Property Rights is conditional on our obtaining a written license from the relevant licensor on such terms as will entitle us to license such rights to you.

23.4You acknowledge and agree that you must not supply any Electronic Service or our Website (or any part of them) to anyone nor may you copy the Products, Services, Electronic Services or Website.

23.5We may from time to time supply material to you in connection with our Products, Services, Electronic Services or Website. You must not obscure, tamper with or otherwise destroy any copyright or other proprietary notices on any material we supply to you. You must only use any material we supply to you in connection with the operation of your account and upon the closure of your account you must return any such material to us.

23.6Anything we supply to you is supplied on a non-exclusive basis and we reserve the right to cease such supply and terminate your usage of any Product, Service, Electronic Service, Website or any other thing we supply to you.

24Applicable Law and Jurisdiction

24.1This Agreement and will be construed in accordance with the laws of England.

24.2The parties irrevocably submit to the exclusive jurisdiction of the courts of England to settle any disputes (including non-contractual disputes or claims) which may arise in connection with this Agreement, save that we may, at our sole discretion (or where required by Applicable Regulations), commence and pursue proceedings in any other jurisdiction and you hereby waive any objection to our so doing on the grounds of venue or forum.

25Assignment

You may not assign or transfer any of your rights or obligations under this Agreement without our prior written consent. We may assign and transfer all or any of our rights and obligations under this Agreement without any obligation to notify you or obtain consent from you.

26Authorised Persons

26.1If you wish to authorise a third party to make Orders or place Trades on your behalf (an "Authorised Person"), you may do so provided that you have notified us in writing and we have provided our written consent. We may require you to formalise the appointment of an Authorised Person by executing, as a deed, a power of attorney. We reserve the right to withhold our consent (or, if previously given, revoke our consent on reasonable notice) and shall not be obligated to provide you with reasons.

26.2You will be liable for all acts or omissions on the part of any Authorised Person. We will have no duty to monitor the Trades, Orders or other acts or omissions or to establish the authority of any such Authorised Person.

26.3You will be responsible for any trading apparently carried out on your behalf. We may act on any instructions we believe in good faith are received from an Authorised Person.

26.4The provision of funds by a third party, and their acceptance by us, in respect of trading on your account in no way relieves you of your obligations or affects your liability to us under this Agreement.

26.5For the avoidance of doubt, we may close your open Trades and your account upon notice of your death. Your estate will remain liable for any sums owed to us. We may (but, prior to any grant of representation, are not bound to) act on the instructions of your personal representative(s).

27Rights of Third Parties

The parties do not intend any term of this Agreement to be enforceable pursuant to the Contracts (Rights of Third Parties) Act 1999 except that any Associate or Associated Company of ours is entitled to enforce the terms of this Agreement pursuant to that legislation.

28Severability

If any part of any provision of this Agreement is invalid or unenforceable, then the remainder of such provision and all other provisions of this Agreement will remain valid and enforceable.

29Termination

29.1This Agreement may be terminated:

(a)by us pursuant to clause 18 (Events of Default and Closure of Accounts) or upon fourteen (14) days notice to you in writing; or

(b)by you upon giving us fourteen (14) days notice in writing

29.2Upon such notice being given, any open Trades will continue until they are closed or expire in accordance with this Agreement. The service of any termination notice will not affect any obligation or liability that may have already arisen in connection with any open Trades or otherwise under this Agreement.

29.3For greater certainty, the following provisions will continue in full force and effect following termination of this Agreement: clauses 17 (Queries, Complaints or Disputes), 19 (Our Liability Limitation and Your Indemnity of Us), 21 (Communications and Notices), 22 (Data Protection), 23 (Intellectual Property), 24 (Applicable Law and Jurisdiction), 25 (Assignment), 27 (Rights of Third Parties), 28 (Severability) and 30 (Interpretation).

29.4This Agreement has no minimum duration. Since the Trades that you may place are subject to market fluctuations, we are not required to provide you with a cancellation right.

30Interpretation

30.1The headings are included for convenience only and will not affect the interpretation or construction of this Agreement.

30.2Unless the context requires otherwise, any reference to:

(a)a clause, sub-clause, paragraph or term is a reference to a clause, sub-clause, paragraph or term of this Agreement;

(b)a party or the parties, is to a party or to the parties (as the case may be) to this Agreement;

(c)a statute or statutory provision includes any consolidation or re-enactment, modification or replacement of the same, any statute or statutory provision of which it is a consolidation, re-enactment, modification or replacement and any subordinate legislation in force under any of the same from time to time and includes all instruments or orders made under such enactment;

(d)a person includes a firm, corporation and unincorporated associations, trust, government, state or agency of state, or any association or partnership or joint venture (whether or not having a separate legal personality);

(e)a time of day is to the time in London, United Kingdom; and

(f)a document is a reference to that document as varied, supplemented or replaced from time to time.

30.3Any words following the terms including, include, example, in particular or any similar expression shall be construed as illustrative and shall not limit the sense of the words, description, definition, phrase or term preceding those terms.

30.4General words will not be given a restrictive interpretation by reason of this being preceded or followed by words indicating a particular class of acts, matters or things.

30.5Unless the context otherwise requires, words in the singular shall include the plural and in the plural shall include the singular.

30.6The following words and expressions shall have, unless otherwise specified, the following meanings:

Act is defined in clause 2.4.

Act of Insolvency means, in relation to a party:

(a)its making a general assignment for the benefit of, or entering into an arrangement or composition with, creditors; or

(b)its stating in writing that it is unable to pay its debts as they become due; or

(c)its seeking, consenting to or acquiescing to the appointment of any trustee or analogous officer of it or any material part of its property; or

(d)the presentation or filing of a petition in respect of it in any court or before any agency alleging or for the bankruptcy or insolvency of such party (or any analogous proceeding) or seeking any arrangement, composition, readjustment or similar relief under any present or future statute, law or regulation, such petition not having been stayed or dismissed within 30 days of its filing (except in the case of a petition for winding-up or any analogous proceeding in respect of which no such 30 day period shall apply); or

(e)the convening of any meeting of its creditors for the purpose of considering a voluntary arrangement.

Agreement is defined in clause 2.1.

Applicable Regulation means as appropriate: (a) the FSA Rules; (b) rules of a relevant regulatory or other governmental authority; (c) the rules of a relevant Exchange; and (d) all other applicable laws, rules and regulations as in force from time to time, as applicable to this Agreement or the Products and Services.

Associate has the meaning given to it in the FSA Rules.

Associated Company means any holding company or subsidiary company (as defined in the Companies Act 2006) and/or any subsidiary company of any such holding company or its subsidiaries.

Authorised Person means any person authorised to make Orders or place Trades on your behalf under clause 26

Base Currency means, subject to our agreement, the currency in which you choose to have your account denominated.

Bid Offer Spread means the difference between the price at which a contract can be bought and sold at a point in time.

Business Day means a day (not being a Saturday or Sunday) when banks are open in London for the transaction of general banking business.

Cash Balance means the balance of your account including all debits/credits and the profit/losses from closed Trades.

CFD or Contract for Differences is an agreement to exchange the difference in value of a financial instrument between the time at which the contract is opened and the time at which the contract is closed.

Client Money Rules refers to the rules as set out in chapter 7 of Client Assets (CASS) of the FSA's Handbook of Rules and Guidance.

Complaints Procedure means our written policy governing complaints regarding any aspect of the Services as published on the Website from time to time.

Conflicts of Interest Policy is available on our Website or by request.

Corporate Action means any event initiated by a corporation which impacts its shareholders. (examples: stock splits, consolidations, mergers and spinoffs).

Disrupted Day is defined in clause 9.28.

Disruption Event is defined in clause 9.27.

Electronic Service means any electronic service, including without limitation, trading, direct market access, order routing or information service that we grant you access to or make available to you either directly or through a third party service provider.

Eligible Counterparty has the meaning given to it by the FSA Rules and Guidance

Event of Default means

(a)an Act of Insolvency occurs in relation to you;

(b)you are an individual and you die or become of unsound mind;

(c)you act in breach of any warranty or representation made under this Agreement;

(d)any representation or warranty made by you under this Agreement and/or any information provided to us in connection with this Agreement is or becomes untrue or misleading;

(e)any amounts due to us is not paid in accordance with this Agreement; and

(f)at any time and for any periods deemed reasonable by us you are not contactable or you do not respond to any notice or correspondence from us.

Exchange means any securities or futures exchange, clearing house, self-regulatory organisation, alternative trading system or multi-lateral trading facility as the context may require.

Expiration in reference to and option means the date and time at which the option expires and all rights or obligations relating to the option cease.

Expiring Trade means a Trade that expires at a determined point in the future.

Expiry Date means the last date and time that trading in a contract can occur. After this date all open Trades will be closed (settled) by us.

Financial Spread Bet means a bet on the difference between the opening and closing prices of a contract. The opening and closing price of a contract is determined by reference to the price of the Underlying Market. A Financial Spread Bet is a legally enforceable contract.

Force Majeure Event is defined in clause 16.2.

FSA means the Financial Services Authority (UK) or any organisation that may replace it or take over the conduct of its affairs in respect of authorising or regulating financial services.

FSA Rules means the rules of the FSA as from time to time varied amended or substituted by the FSA and as set out in of the FSA's Handbook of Rules and Guidance. Please go to the FSA website at www.fsa.gov.uk or www.fsa.gov.uk/Pages/handbook/index.shtml

FX means foreign exchange.

FX Dealing Guide is available on our Website or by request.

Initial Margin Requirement means the minimum sum required to be deposited in order for you to open a Trade.

Intellectual Property Rights has the meaning given to it in clause 23.1.

Intrinsic Value for a call option occurs when the price of the Market is higher than the Strike Price. Conversely a put option has intrinsic value if the Strike Price is higher than the Market price. In both cases the amount of the intrinsic value is calculated by deducting the Strike Price from the Market price.

Joint Account has the meaning given to it in clause 3.8.

Limit Order means an instruction to deal in a particular Market if our price in that Market becomes more favourable to you.

Linked Account means all other accounts with us that are held in your name.

Liquidation Value means the sum of your Cash Balance and the profits/losses from your open Trades.

Long Trade means a Trade that is made by buying a Market in the hope to profit from any upward price movement.

Loss in respect of any matter, event or circumstance includes all demands, claims, actions, proceedings, damages, payments, losses, costs, expenses or other liabilities, and any consequential indirect or special loss, including, but not limited to loss of profits, loss of revenue, loss of anticipated savings or loss of opportunity.

Maintenance Margin means the amount of funds required to maintain an open Trade.

Manifest Error is defined in clause 9.12.

Margin means Initial Margin Requirement and/or Maintenance Margin and is sometimes referred to as 'variation margin'.

Margin Call means a request or deemed request for funds to bring your Trade Funds Available to zero (0) or above.

Market means a unique set of Products based on the price movement of an Underlying Market.

Market Order means an Order at the price of the current prevailing Market price.

Non-Expiring Trade means a Trade that has no expiry date. These Trades remain open each night with an applicable financing charge applied to your account.

Order means an instruction to open or close a Trade at a price, the same as, or higher or lower than the current Market price and includes: an initial Order, a Limit Order, a Stop Loss Order and a Market Order.

Order Execution Policy means the document that describes the reasonable steps that we will take to ensure that, when executing order, we treat you fairly and obtain the best possible results for you in accordance with the FSA Rules.

Privacy Statement means the privacy statement posted on the Website as amended from time to time.

Product means each type of financial contract we make available under this Agreement (example: our UK 100 Daily Rolling contract is one of our UK100 index products within the Market group of UK Indices).

Professional Client has the meaning given to it by the FSA Rules.

Relevant Funding Rate means:

(a)in respect of a Long Trade, the reference rate from time to time plus 2.5%; and

(b)in respect of a Short Trade, the reference rate from time to time less 2.5%. Note that where the reference rate is less than 2.5% we will charge you the difference between the reference rate and 2.5% on a Short Trade.

Retail Client has the meaning given to it by the FSA Rules.

Risk Warning means the notice we are obliged to give Retail Clients and Professional Clients in relation to the risks associated with the Products and Services provided under this Agreement.

Roll Over is defined in clause 9.19.

Services means the services offered by us to you in respect of trading and betting as specified on the Website and governed by this Agreement.

Short Trade means a Trade that is made by selling a Market in the hope to profit from any downward price movement.

Spot Price means the price for a currency for immediate settlement or delivery.

Stop Loss Order means an instruction to deal in a particular Market if our price in that Market becomes less favourable to you. These orders are commonly used to provide some risk protection, but are not guaranteed.

Strike Price means the fixed price at which the holder of an option in entitled to buy or sell.

Time Value means the value of the option after deducting any Intrinsic Value from the Market price. This extrinsic premium reflects the probability that the option will move further into the money prior to expiration.

Trade means any transaction entered into under this Agreement (examples: Financial Spread Bets and trades in CFDs or FX). For greater certainty, references herein to 'trading' includes 'betting' in respect of Financial Spread Bets.

Trade Funds Available means the amount of money in your account that is free to be used for satisfying Margin requirements.

Underlying Market means the relevant financial instrument, index, currency, or other instrument, whose price or value provides the basis for us to establish the price we quote you for a Market.

Website means the website operated by us for the purpose of providing the Services to you.

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(B)Risk Warning Notice

Monecor (London) Limited, trading as ETX Capital (ETX Capital, we or us), is authorised and regulated by the Financial Services Authority (FSA) under reference number 124721. The financial products and services offered by us carry a high level of risk which may make them unsuitable for some investors. You should therefore make sure that you understand the risks involved completely before using our products and services.

We do not provide investment advice. If you are unsure if this form of investing suits you, you should seek advice from an authorised financial adviser. We are not currently authorised to give investment advice of any kind and therefore will not provide advice to you. However, from time to time, we may give you factual information in relation to an underlying market or a transaction which you have enquired about.

Only speculate with money you can afford to lose.

This Risk Warning does not form part of your trading agreement with us. This Risk Warning is meant to help you understand the risks involved with the products and services offered by us; however, this Risk Warning cannot explain all risks involved. It can only serve as a general guide to the risks involved with trading our products and using our services, and you must determine for yourself if the risks involved are appropriate for your investment strategy and risk appetite.

Trading in derivative financial products involves high risks. When deciding whether to trade in such instruments you should be aware of the following:

1Trading off-exchange

When you trade with us, you will be entering into an off-exchange (also known as an over-the-counter, or OTC) derivative which is non-transferable. This means you will enter into trades directly with us and those trades must be closed with us. You will not be able to sell or transfer your trades to third parties. This can involve greater risk than investing in a financial instrument which is transferable, or dealing in an exchange-traded derivative, because your ability to open and close trades with us is dependent on our being in a position to accept orders from you and to execute them.

2Margin

You can rapidly lose substantially more on a trade than you have deposited with us to open that trade (the Margin). Any market losses exceeding the Margin will be taken from your account. You may be called upon to deposit additional Margin at short notice to maintain your trade. We will revalue your open trades continuously during each trading day, and any profit or loss will be immediately reflected in your account. A loss may require you immediately to deposit additional funds in your account in order to maintain your open trades. We may also change our Margin rates and/or notional trading requirements at any time, which may also result in a change to the Margin you are required to maintain for a trade. If you do not provide such additional funds (which may be a substantial amount) within the time required (which may be very short, i.e. minutes), your trade may be closed out at a loss and you will be liable for any deficit.

3Loss limits are not guaranteed

Making a stop loss order may limit your loss but this is not guaranteed. Your loss may be greater in some circumstances. Slippage (also called 'gapping') occurs when the market moves past the price at which you have set your stop loss order. This may occur because the particular underlying market has become unusually volatile. For example, the underlying market may have stopped trading at a point above your stop loss order price and after a period of time, may recommence trading at a price below your stop loss order price. In such a circumstance we would close your open trade at or as quickly after the reopening of trading in that underlying market, i.e. at the next price available. Additionally, markets may also be extremely busy when the underlying market becomes volatile and, in accordance with our Order Execution Policy, we will execute orders on a first-in-first-traded basis. This may result in your stop loss order being executed at a price below your stop loss order price in a rapidly falling underlying market.

4Past performance

You should not assume that past performance bears any relation to potential future performance. There can be no certainty concerning the future performance of any underlying market or trades that you make. No representation can be made as to future performance.

5Trading suspension

At times, market conditions and the operation of the rules of certain markets (i.e. suspension of trades due to volatility, lack of liquidity in the underlying, and other reasons) may make trading more risky. This may lead, in extreme cases, to a change of the settlement of a contract. We reserve the right to change settlement for contracts expiring on a given day if, on that day, trading is suspended.

6Leverage and gearing

Leverage or gearing enables you to enter into trades with a comparatively small deposit (also called margin) in terms of the overall contract value. However, this means a relatively small movement in the underlying market can have a disproportionately dramatic effect on your trade.

Even a small movement in the underlying market may result in the loss of your entire margin amount and leave you liable for any other losses sustained on the position. Therefore, it is imperative that you only speculate with money that you can afford to lose.

7Non-UK markets and foreign exchange

Markets outside of the United Kingdom will involve different risks. In some cases, those risks may be greater. The potential for profit or loss from transactions on those markets or in contracts denominated in a currency different from your base currency will be affected by fluctuations in foreign exchange rates. Where you maintain trades or have funds on deposit in your account with us in a currency other than your national/domestic currency, you are exposing yourself to cross-currency risk. It is your responsibility to manage this risk and we shall not liable for any losses that you suffer as a result.

8Contingent liability transactions

Where a trade is margined, we require you to make a series of payments against the purchase price, instead of paying the whole purchase price immediately.

Even if a trade is not margined, it may still carry an obligation to make further payments in certain circumstances over and above any amount paid when you entered into the contract. Contingent liability transactions which are not traded on or under the rules of a recognised or designated investment exchange may expose you to substantially greater risks.

9Spreads, commissions and costs

Before you begin to trade with us, you should obtain details of all commissions and other charges for which you will be liable. If any charges are not expressed in money terms (for example, as a bid offer spread), you should obtain a clear explanation of what such charges are likely to mean in specific money terms. In the case of futures, when commission is charged as a percentage, it will normally be as a percentage of the total contract value, and not simply as a percentage of your initial payment.

Depending on the type of trade you make and how long it lasts we may require you to pay financing costs. Also, if you trade in currencies different than your base currency we may require you to convert those foreign currencies to your base currency. The aggregate of financing costs and foreign exchange costs may exceed any profits on your trade or increase the losses you may suffer on a trade.

10Tax risk

You take the risk that your trades and any related profits may be or become subject to tax. We do not represent or warrant that no tax or stamp duty (other than trading duty) will be payable. You will be responsible for all taxes and stamp duty in respect of your trades. ETX Capital does not provide any tax advice to clients, and you are responsible for your own tax affairs.

11Your money

If you have been categorised as a retail client or we have otherwise agreed to treat you as a professional client, we will hold your money in trust in a segregated client money bank account separate from our money; however, this may not provide complete protection (for example, in the insolvency of our bank). Your attention is also drawn to 'Your Money' section of our Terms and Conditions.

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(C)Order Execution Policy

1Introduction

We, Monecor (London) Limited, trading as ETX Capital, are authorised and regulated by the Financial Services Authority (FSA). In accordance with the Markets in Financial Instruments Directive (MiFID) and the FSA Handbook of Rules and Guidance we have a duty to treat clients fairly, to conduct our business in an open, honest and professional manner and to act in the best interests of our clients.

We provide financial products and services (examples: trading in contracts for differences and foreign exchange) covering a wide variety of Underlying Markets. This Policy determines the reasonable steps that we will take to provide our retail and professional clients with trading services.

In this Policy:

Bid Offer Spread (also known as Bid-Ask Price) means the difference between the price at which you can sell and the price at which you can buy.

Limit Order means an order to buy or sell a Market when it hits a certain price. This is an instruction to trade at a more favourable price than is currently available.

Market means a unique set of products based on the price movement of an Underlying Market.

Order means an instruction to open or close a Trade in a specific Market.

Trade means an Order that is executed.

Trading Agreement means the agreement that governs your relationship with us with respect to your trading in our products and using our services.

Stop Loss Order means an instruction to deal in a particular Market if our price in that Market becomes less favourable to you. (These Orders are commonly used to provide some risk protection, but are not guaranteed).

Underlying Market means the relevant financial instrument, index, currency pair or other instrument, whose price or value provides the basis for us to establish the price we quote you for a Market.

This Policy does not form part of the contractual terms of the Trading Agreement. In the event of a conflict between this Policy and the terms and conditions of the Trading Agreement, the Trading Agreement shall prevail.

If you require more information or further explanation about any aspect of this Policy, please do not hesitate to contact Client Support at clientservice@etxcapital.com or telephone +44 (0)20 7392 1494.

2order Execution

All your Trades are with ETX Capital as counterparty. Trading parameters as to any minimum and maximum sizes that are accepted and our hours of normal trading, together with other key information (example: margin requirements), are detailed for all Markets on our trading platform or upon request to Client Support.

Our trading systems and procedures ensure that our Market prices reflect, at all times, prevailing Underlying Market conditions and are as competitive as possible. Subject to an Underlying Market being closed or suspended, within normal Market hours we make such prices available for Trades within defined Trade size parameters and outside those parameters as we may determine from time to time (where our clients are so permitted with reference to the terms and conditions).

At our sole discretion we may choose to execute a transaction on our own account in order to hedge any particular or residual Market position accruing as a result of your trading. Even where such a transaction may be related to your particular Trade, at no time will we be acting as your agent or owe you a fiduciary duty in respect of your Trade or our hedge.

In providing you with financial products and services we, as your counterparty, act as a principal only and therefore represent the sole execution venue to which you have access and only at a price set by us. Orders are executed on an 'over the counter' (OTC) basis rather than on an exchange or other regulated market.

If you make an Order larger than a size limit specified by us, or in an illiquid Underlying Market, or with a specific request attached, we will proceed to 'work the Order' on a fully disclosed basis. This is where we will make Trades in our own name in the Underlying Market as a hedge against your prospective Trade. Once we have obtained our hedge we may execute your Order as a single Trade or series of Trades.

3Execution Criteria

In providing trading services, we determine the most advantageous execution for our retail clients and professional clients by taking into account a range of (sometimes competing) factors and criteria. This Policy defines our prioritisation and approach adopted in reflecting those factors and criteria in executing Orders.

3.1Price

We view the relative importance of the price in the execution of an Oder to be of high.

For any given Market we may quote one or two prices: our offer price (the higher one at which you can buy the Market from us) and/or the bid price (the lower price at which you can sell the Market to us).

The calculation of a Market's bid or offer price pays due consideration to the price of the Underlying Market. Where necessary this may then be adjusted to allow for the effect of interest over the period of the Market contract, to take into account any corporate actions and other relevant factors and to include a commission. Prices on our trading platform take into account data from various sources and not directly from one source; they may not match the prices you see elsewhere.

If you choose to make an Order for immediate execution on a bid or offer price shown on our trading platform, execution will be at the latest price as calculated by our pricing system. In some cases this might be more, or less, advantageous than the price originally shown. In volatile Markets, where such an Order has not been rejected for failing our tolerance checks, the divergence in price might be greater. In such cases we view the speed and certainty of execution to be an overriding factor in giving you the most advantageous execution.

We undertake periodic reviews to ensure that the Underlying Market price data we receive represents competitive executable prices.

Some Markets we offer are quoted outside the normal trading hours of the exchange or other regulated market where the Underlying Market is traded. To execute Orders outside such normal trading hours we determine the price at our sole discretion, acting in good faith, and by reference to one or more alternative Underlying Market instruments that are trading, the standing of world market prices at that time and/or to the supply and demand of other clients. At such times our prices may reflect a wider Bid Offer Spread and might be restricted to reduced Trade sizes.

When the Underlying Market is volatile and its price is changing rapidly, we are not able to guarantee that every such price movement will result in a change to the calculated price of the Market. The frequency of updates of our Market price is subject to the technical limitations of computer hardware, software and data and communication links. If you specify a price for an Order (such as with a Stop Loss Order or a Limit Order), where the Underlying Market is moving so rapidly as to 'gap through' the specified price, we will execute the Order for you at the fairest price as possible.

Once a Stop Loss Order price is reached we will attempt to fill your Order at the next price available within a reasonable time. The level at which we fill your Order may be the same, or worse, than the price you specify. Your Order is triggered by our price during our trading hours, not the price of the Underlying Market during its normal trading hours.

We do not guarantee that when we open or close a Trade with you the price will be as good as or better than one you might have obtained elsewhere.

3.2Costs

We view the relative importance of the costs of execution of an Order to be high.

For most Markets, a commission as well as a Bid Offer Spread is charged. This will only be charged on the execution of an Order which opens a new or closes an open Trade.

The Bid Offer Spread that we charge during and outside normal trading hours for Markets is set out in the 'Market Information Sheets' available on our website or by request. Additional charges or spreads may be charged where this is negotiated with you in advance.

3.3Total Consideration

We view the relative importance of total consideration in the execution of an Order to be high.

In determining the various priorities and weights of all the different factors and criteria that we will take into account in the execution of Orders for clients, we will usually attach the highest relative importance to total consideration. This will usually comprise the price and costs related to execution, although in some circumstances we may determine that other execution factors (in particular: speed and certainty of execution) are more important than price and/or cost in obtaining the best overall outcome for you.

3.4Size of Orders

We view the relative importance of the size of Orders in the execution of an Order to be high in circumstances where it might influence the choice of our hedging execution venue, and the overall price of execution might inevitably be affected at the expense of achieving the requested size.

Execution will not generally be affected by Trade sizes where the Order is within any pre-defined minimum and maximum limits. Such Orders will be executed automatically by our trading platform. Larger maximum size restrictions will generally apply to Orders executed by telephone where we have agreed to provide you with this service.

Where your Order size is greater than our predefined limit, it will become an important factor in the execution of your Order. With the exception of foreign exchange products, if your Order is of a particularly large size we may work the Order in tranches in order to be able to achieve complete execution and to do so for the most advantageous price outcome. Such orders will usually be executed in tranches up to or equal to the normal Market size. In such circumstances, the price may vary between tranches. Depending on our arrangement with you those individual tranches may be passed on to you as obtained, or be converted into a single Trade at the aggregate average price.

Where execution of a client Order requires us to work our hedge in tranches in the Underlying Markets, this is done by placing our Orders in the particular execution venue on a first-in-first-filled basis (i.e. in the same sequence we receive your and other client Orders), unless the particular specifics of an Order or the market conditions mean that this is either impractical to do so or risks a potential negative impact.

For foreign exchange products we will generally not work large Orders in tranches and will deal with such Orders on 'fill or cancel' basis.

Whilst your Stop Loss Order, Limit Order or opening Order may be of a size that might be executed automatically within normal trading hours, it might exceed the maximum size limit when out of normal trading hours. In such circumstances, execution may be carried out in tranches where the price may vary considerably for each tranche.

3.5Speed of Execution

We view the relative importance of the speed of execution of an Order to be high.

Should Market circumstances result in unusually high demand, then automatic Market pricing might be temporarily superseded wholly or in part by manual pricing and execution. During such times this might cause delays in speed of execution which itself may impact on the price at which Orders are executed. We have procedures in place to minimise the risk and impact of such delays.

3.6Likelihood of Execution

We view relative importance of the likelihood of execution and the minimisation of uncertainty to be of high.

When executing through our trading platform, we provide you with screens showing continuously updating prices for Markets offered and, subject to trading times and trading size limits, you have the ability to trade immediately and with a very high degree of certainty.

In order to increase the likelihood of execution for larger Orders and Orders of clients trading by telephone, we ensure that we have the necessary access to trading venues and third-party market makers likely to have the required liquidity to enable us to hedge prior to executing the Order.

3.7Nature of the Order

The type of Order, including whether it is a Stop Loss Order, Limit Order or opening Order, can be an important factor in relation to execution where this might determine whether the Order is priced and executed manually rather than automatically.

3.8Market Circumstances

In certain circumstances, the nature of the Market traded (particularly when involving equities) may become an important determinant in the execution of the Order. Where circumstances relating to an Underlying Market might affect the future price and the value of the Order going forward, we will take reasonable efforts to achieve a fair execution for you.

3.9Specific Instructions

If you give us specific Order instructions, those instructions will take priority over other determinants as set out in this Policy. Where such instructions are not comprehensive we will revert to this Policy as and when necessary. However, in general, we will still exercise our judgement in balancing the various factors in order to obtain the most advantageous outcome for you on a consistent basis.

Where execution under your specific instructions results in us having to use a different process than that specified in this Policy, we may have to pass the direct costs incurred on to you in accordance with the terms of your Trading Agreement.

4Aggregation of Orders

4.1Client Orders

We may sometimes combine two or more Orders from different clients in order to execute a single transaction. This will be where we believe reasonably that it is in your overall best interest and is unlikely overall to be to your disadvantage.

4.2Aggregation of Client Orders with our own Orders

Where our risk requirements dictate that we must execute an Order in an Underlying Market related to the Market of a client's Order and we receive more than one client Order for that Market, then we will execute the Orders on a first-in-time basis, unless the client Orders can be combined to obtain a better execution outcome for our clients.

5Fiduciary Duty

Although we aim to operate in accordance with this Policy, this Policy does not create any legal obligation or duty, fiduciary or otherwise, over and above our duties to you under the Trading Agreement or any regulatory obligations placed on us by the FSA.

6Monitoring and Review of this Policy

We will, on a regular basis, monitor our operations in relation to this Policy. A periodic review will be made of the execution venues and data sources we rely upon to provide pricing information. Where we identify the need to make any material change to either this Policy or to our Order execution arrangements, such changes will be fully disclosed to you.

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